Newsroom

A Deeper Look

The Super MSO Model in Urgent Care

April 25, 2017

Understanding the Super MSO Model and How it May Be Helpful in Meeting the Challenges Faced By Independent Urgent Care Operators Part II in the Series As previously discussed in Part I of this series, many independent urgent care operators discover early on, and after significant investments are made, that they may not have a real clear business strategy or roadmap to build long-term value for their business; a strategy that will ultimately lead to a successful and lucrative sale down the road.  Even though their centers may be highly profitable today, they are concerned about the financial risks associated with […]

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Choice of Entity – Part I

April 5, 2017

An LLC is the Best Thing Since Sliced Bread….or Is It? Background Limited liability companies (“LLCs”) have been around for quite a while.[1] They have become the most popular form of doing business,[2] and for good reason. LLCs provide its owners (technically called “members”) with the same protection from legal liabilities as do corporations.[3] Most domestic LLCs with two or more members are, in most cases, treated as partnerships for income tax purposes. LLCs with only one member are almost always treated as disregarded entities for income tax purposes. Every LLC has the right to make a “Check the Box” […]

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Revenue Recognition – The Last Frontier

April 3, 2017

Importance Revenue is one of the most important indicators of a successful business. It is a key statistic used in the assessment of a company’s financial health, performance and future.  Such assessment has long been clear to the financial world. For example, revenue is the starting point for virtually any historical analysis and forecast about a company’s operations. Revenue is also a primary source of valuation in many industries, including those that are publically traded, and is a secondary source for many others. Users of financial statements are also keenly interested in peer performance and trends of revenue. There is […]

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The Challenges Faced by Independent Urgent Care Operators

March 8, 2017

Understanding the Market Forces at Play, Addressing the Challenges, and Developing Long-Term Strategies for Sustainable Growth Part I in the Series Many independent urgent care operators discover early on, and after significant investments are made, that they may not have a real clear business strategy or roadmap to build long-term value for their business; a strategy that will ultimately lead to a successful and lucrative sale down the road.  Even though their centers may be highly profitable today, they are concerned about the financial risks associated with opening new centers.  Yet they recognize that they need to grow in order to […]

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ACH Payments: A New Front in the Fraud Wars

Data breaches and cyberattacks continue to receive a lot of media attention, while another technology-enabled crime — Automated Clearing House (ACH) fraud — is going relatively unnoticed. Your clients likely use the ACH network every day to make debit and credit purchases, and their account information may be more vulnerable than they realize. What It Is The surging popularity of the ACH is understandable. Consumers can use it to make electronic payments directly from their checking or savings accounts to other parties’ accounts, eliminating the need to pay bills with paper checks or physical credit cards. Likewise, companies use the […]

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NYC Requires Employers to Have Written Contracts with Independent Contractors

February 27, 2017

New York City (“NYC”) became the first city in the USA to pass legislation to protect independent contractors (“Freelance workers” or “Freelancers”) by passing the Freelance Isn’t Free Act (“FIFA”), effective May 15, 2017. FIFA establishes and enhances protections for freelance workers. Briefly, it requires their right to a written contract between the hiring party and the Freelancer, the right to be paid timely and in full, and the right to be free of retaliation. FIFA also establishes penalties for violations of these rights, including statutory damages, double damages, injunctive relief, attorney’s fees, and other such remedies as may be […]

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Bottom Dollar Guarantees – Gone with the Wind

February 8, 2017

About 18 months ago, I issued an E-Blast that dealt with the fact that time was running out on using “bottom dollar guarantees” as a way to shift liabilities allocated to a partner who needs additional debt so as to “cover” negative tax capital accounts so as to avoid gain recognition. Well, the Department of the Treasury issued temporary regulations on October 5, 2016 that, in effect, ended the viability of this planning idea. In general, one of the many tax advantages of a partnership over other entities is that a partner’s share of partnership liabilities increases the partner’s outside […]

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IRS Extends Time to Make Certain Accounting Method Changes

January 27, 2017

Under the Tangible Property Regulations Generating Significant Tax Saving Opportunities The IRS issued Notice 2017-6 on December 20, 2016 that once again extended the time period during which certain automatic accounting method changes can be requested with respect to the tangible property regulations (“TPR”). Under the provisions of the Notice, certain automatic accounting changes can be requested on Form 3115 provided it is filed with the income tax return for a tax year beginning before January 1, 2017. Of particular note is that this Notice permits taxpayers that previously made accounting method changes for repairs and maintenance costs in the […]

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IRS Guidance Sheds Light on Reasonable Compensation

What constitutes reasonable compensation and how it is treated for federal tax purposes are issues that arise for a wide range of organizations, including closely held C corporations, family businesses and S corporations. An IRS publication provides insight into how taxpayers can expect the agency to review compensation reported on tax returns – and possibly avoid an audit or tax court appearance. An Unofficial Position The guidance comes in the form of a “job aid” for IRS valuation analysts.  It is intended to assist the analysts in their examination of reasonable compensation and does not represent an official IRS position. […]

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Projecting Cash Flow

December 27, 2016

When valuing a business or a business interest, application of the market approach requires an estimate of the subject company’s revenues, EBITDA (earnings before interest, taxes, depreciation and amortization) or other measures of economic benefit.  Similarly, the income approach requires a projection of net income or cash flow.  Often, for smaller companies, management does not or cannot prepare thoughtful, considered projections.  In these cases, it is up to the valuation expert, hopefully with management’s input, to do so. In those circumstances where management prepares projections, the valuation expert should not simply accept the projections without scrutiny.  Often the case is […]

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